Fayette County school board approves FY26 working budget 3-2; public demands forensic audit

The Fayette County Board of Education voted 3–2 on Sept. 22 to approve the district’s fiscal year 2025–26 working budget and requested that Superintendent Demetrius Liggins present a plan to restore the district contingency to 6 percent.

The meeting drew lengthy public comment focused on the district’s recent budget shortfalls and staffing changes. Dozens of residents, teachers and union supporters called for an external forensic audit; several cited a commonly repeated figure of $16 million described by speakers as a budget shortfall or gap. Public commenters also raised questions about transfers from the building fund and large special‑revenue receivables.

The board's majority framed the vote as necessary to present a balanced working budget while requiring a follow‑up plan. Superintendent Demetrius Liggins and finance staff described changes in accounting timing and the difference between unaudited reports and final audited figures, and said the $16 million figure represented a projection tied to board priorities, not missing cash.

Why it matters: The working budget sets district spending and staffing priorities for the coming school year. The vote came during heightened scrutiny of FCPS financial management and amid repeated public calls for transparency and an external forensic audit — demands that board members and staff said they were forwarding to the audit committee for review.

What the board and staff said

Superintendent Demetrius Liggins sought to clarify the district’s stance on the shortfall, saying the $16 million referenced in public comments was “an anticipated budget shortfall” tied to board priorities rather than a bucket of missing cash. Finance staff said the district will increase monthly monitoring of payroll and encumbrances so variances can be identified earlier in the year.

Public commenters pressed for a forensic audit. Laura Webb, introduced herself as a District 5 resident and said officials had not answered questions to the public’s satisfaction: “We care, we fight, we show up, we vote,” she said, urging the board to support both an audit and collective bargaining for teachers.

Noah Cornett, a District 2 resident, urged the board to commission a forensic audit immediately. “In order to rebuild public trust…that is a price that is well worth paying,” Cornett said, proposing a funding option tied to district leadership compensation if necessary.

Key context and contested figures

- Several speakers alleged large deficits in special revenue and food service funds (public commenters cited roughly $12 million and $1.3 million respectively); district staff said those numbers reflect accounting treatments for receivables and reimbursements and that grant funds are typically recorded on a reimbursable basis. - Multiple speakers questioned a February transfer of about $15 million from the building fund into the general fund; members of the public argued the district still has unmet capital needs (roofs, HVAC). Staff said transfers had been recorded per statutory language but that the ongoing facility needs merit continued attention. - The district submitted an unaudited annual financial report (AFR) to the Kentucky Department of Education on a statutory timeline; staff noted it is typical for the unaudited AFR to be followed by later accrual adjustments and that the final audited numbers will be presented in November.

Votes at a glance

- Adopt agenda — Motion to adopt the meeting agenda. Mover: Board member Amy Green; second: Board member Penny Christian. Outcome: Approved 5–0. - Approve minutes (9/8 planning meeting, 9/16 special call) — Motion by Amy Green; second by Monica Mundy. Outcome: Approved 5–0. - Approve consent items — Motion by Amy Green; second by Penny Christian. Outcome: Approved 5–0. - Accept unaudited year‑end financial report (AFR) — Motion by Amy Green; second by Penny Christian. Outcome: Approved 3–2. (The AFR was presented as an unaudited submission to KDE with accruals and adjustments to follow.) - Approve FY2025–26 working budget — Motion by Amy Green; second by Penny Christian. Outcome: Approved 3–2. The motion included a request that Superintendent Liggins present a plan to restore the contingency (fund balance) to 6 percent. - Accept monthly treasurer’s report (July) — Outcome: Approved 3–2. - Accept monthly treasurer’s report (August) — Outcome: Approved 3–2. - Enter closed session (personnel and potential litigation) — Outcome: Approved 5–0.

What’s next

The board asked the superintendent to submit a restoration plan for the contingency and the audit committee will continue work to determine whether an operational or forensic audit is warranted. Staff said they will increase the frequency of budget monitoring and provide more frequent payroll and encumbrance reports to the board starting after October.

Ending note

Public speakers at the meeting urged stronger external oversight and routine transparency; several board members and staff acknowledged the need for clearer monthly reporting and tighter payroll and stipend controls to avoid large year‑end variances.